12 Feb 2007

Close Recommendation for SPY Iron Condor initiated on 4 Jan 07

Trade Summary

SPY at 143.22
3 days to Feb expiration.

Buy SPY Feb 144 Call
Sell SPY Feb 146 Call
Buy SPY Feb 137 Put
Sell SPY Feb 135 Put

For a net price of $0.50 Debit or less.
Profit or Loss: $45 per entry.
Percentage Profit: 45/105 X 100% = 42.86%

Trade Analysis

We've been waiting to close up this trade and we'll make full use of this down move today to close up this position to lock in our profit. We probably could buy this condor back for less tomorrow but we feel that to increase our profit by $0.10 or so is not worth the risk. Including the last Friday, today is the second straight bearish day. A bounce may occur soon and our profit may just become smaller if that happens.

*****Trade History*****

4 Jan 2007

SPY Iron Condor initiated on 4 Jan 07

Trade Summary

SPY at 141.49
42 days to Feb expiration.

Sell SPY Feb 144 Call
Buy SPY Feb 146 Call
Sell SPY Feb 137 Put
Buy SPY Feb 135 Put

For a net price of $0.95 Credit or better.
Total margin required: $$105.

Trade Analysis

This SPY iron condor is similiar to the IWM condor. Good profitable range that has proven support and resistance. For the SPY, its 143.12 resistance from 14 Dec and support of its 50-day MA provide good probability for this trade. This trade has a probability of success of 54.78%. We are risking $105 to make $95 for each trade we put up. This is very good risk/reward.

Gary

Founder, Head Trader of MarketNeutralOptions
www.MarketNeutralOptions.com

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